CLO market dismisses First Brands contagion worries
But investors say larger concerns remain for the product’s riskiest tranches
Investors in collateralised loan obligations (CLOs) have shrugged off the high-profile bankruptcy of auto parts maker First Brands despite ongoing pressure in the riskiest CLO segment.
Because the company comprised less than 1% of most CLO funds it featured in, its collapse has had little direct impact on the market, and investors doubt the situation will drive broader concerns.
“The First Brands
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